Chapter 1 Flashcards
(23 cards)
Subdivision A
income or loss from an office or employment
Subdivision B
income or loss from business or property
Subdivision C
taxable capital gains or allowable capital losses
Subdivision D
other sources of income
Subdivision E
deductions in computing income
Capital Loss
negative capital gains taxable; taxable capital gains become NIL
Non-Capital Loss
negative NITP; NITP becomes NIL
Provision
a condition or requirement in a legal document
Citation
a specific piece of legislation, for which there is a specific format
248(1)
Definitions
Definitions
248(1)
Section; Subsection; Paragraph; Sub-paragraph; Clause
1-260(Arabic Numera)(lower case letter)(lower case roman numeral)(upper case letter)
Prescribed
more detail can be found in the Income Tax Regulations
POD - ACB
proceeds of disposition minus adjusted cost basis; the result is a capital gain or loss; if multiplied by the inclusion rate, a taxable capital gain or allowable capital loss results
4 Entities Referred to by ITA
(1) Individuals; (2) Corporations; (3) Trusts; (4) Partnerships
Definiition of Individual
a person or trust according to the ITA
Partnership
a legal relationship but not a legal entity
Sole Proprietorship
the owner is the individual proprietor who must report business income on an income tax return (T1)
Economic Objectives of Taxation
resource allocation; distribution effects; stabilization effects; fiscal federalism (provincial transfer payments)
Subdivision F
rules relating to computation of income
Subdivision G
amounts not included in computing income
Describe Other Sources of Information
CRA website; CRA publications; court cases (decisions)
Definition of Person
individual , corporation, or trust
